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Primerica, Inc. (PRI)

Company Dividend Discount ModelIndustry: Insurance - LifeSector: Financial Services

Valuation Snapshot

Stable Growth$509.21 - $1,350.80$778.64
Multi-Stage$346.17 - $378.35$361.97
Blended Fair Value$570.30
Current Price$277.59
Upside105.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS14.38%15.58%3.402.822.522.251.941.731.331.081.000.99
YoY Growth--20.38%11.85%12.26%15.99%11.65%30.56%23.22%7.35%1.71%23.74%
Dividend Yield--1.19%1.12%1.46%1.64%1.31%1.96%1.06%1.12%1.22%2.22%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)721.26
(-) Cash Dividends Paid (M)132.97
(=) Cash Retained (M)588.29
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)144.2590.1654.09
Cash Retained (M)588.29588.29588.29
(-) Cash Required (M)-144.25-90.16-54.09
(=) Excess Retained (M)444.04498.13534.19
(/) Shares Outstanding (M)33.2333.2333.23
(=) Excess Retained per Share13.3614.9916.08
LTM Dividend per Share4.004.004.00
(+) Excess Retained per Share13.3614.9916.08
(=) Adjusted Dividend17.3718.9920.08
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$509.21$778.64$1,350.80
Upside / Downside83.44%180.50%386.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)721.26768.14818.07871.24927.88988.191,017.83
Payout Ratio18.44%32.75%47.06%61.37%75.69%90.00%92.50%
Projected Dividends (M)132.97251.56385.00534.72702.28889.37941.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)228.41230.58232.74
Year 2 PV (M)317.42323.46329.57
Year 3 PV (M)400.30411.79423.50
Year 4 PV (M)477.37495.73514.61
Year 5 PV (M)548.92575.44602.97
PV of Terminal Value (M)9,529.309,989.5710,467.46
Equity Value (M)11,501.7312,026.5712,570.84
Shares Outstanding (M)33.2333.2333.23
Fair Value$346.17$361.97$378.35
Upside / Downside24.71%30.40%36.30%

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